- STM DCF Analysis: Intrinsic Value $28 vs Price $58
May 13, 2026 · gurufocus.com
On May 13, 2026, we delve into the DCF analysis for STMicroelectronics NV (STM), a company that has shown remarkable price performance recently. Over the past y
- Stock market today: Dow slides, S&P 500 and Nasdaq rise as PPI inflation data comes in hot
May 12, 2026
US stocks were mixed on Wednesday as investors weighed a hotter-than-expected reading of wholesale inflation and awaited updates on President Trump’s trip to China.
The Dow Jones Industrial Average (^DJI) fell 0.4%. The S&P 500 (^GSPC) rose 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) climbed 1% after stocks mostly fell on Tuesday amid a chip sector sell-off.
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US producer prices rose far more than expected in April, official data showed, echoing a surprisingly hot consumer inflation report and reinforcing bets that the Federal Reserve will hold interest rates steady at its next meeting. On a year-over-year basis, headline wholesale inflation came in at 6% in April, overshooting estimates of 4.8%.
Meanwhile, President Trump is traveling to China for a summit with his counterpart Xi Jinping, where the two leaders are expected to discuss trade and AI. The visit comes as a shaky ceasefire holds, but the prospect of US-Iran peace talks remains uncertain. Trump reiterated military threats against Iran ahead of his arrival in China, which is Iran’s largest oil customer and a key diplomatic partner.
Earnings season continued on Wednesday, as Cisco Systems (CSCO) and Alibaba (BABA) both reported beats on revenue and earnings per share. Birkenstock (BIRK) missed analyst expectations on both the top and bottom lines.
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19 mins ago
Jake Conley
French AI lab Mistral working with European banks on answer to Anthropic's Mythos
The French artificial intelligence lab Mistral AI is working with European banks to develop and deploy a cybersecurity-focused AI model like Anthropic’s Mythos, per Bloomberg.
Anthropic’s announcement of the cybersecurity and hacking capabilities of Mythos — and the US lab’s subsequent decision to limit access to just a handful of major US companies — sparked a panic around the consequences of AI powerful enough to find exploits in highly critical software, such as in the financial services industry.
Mistral has been developing a similar cybersecurity-focused model and is now in discussions with major European banks about access once the model is ready for use, Bloomberg reported.
While Anthropic has limited access to a small circle of primarily major US companies, the EU is in talks with the company about using the Mythos model to test European banks and other major firms for security violations.
“We must have control over this technology,” said Mistral CEO Arthur Mensch at a National Assembly hearing in France on Tuesday.
“You can’t have the French military’s source code scanned by Mythos. That creates such an irreparable dependency that we absolutely must find solutions.” 57 mins ago
Jake Conley
Strength in commodities outside of energy has been 'equally notable this year,' LPL Financial says
Energy prices have captured investor attention as the war in Iran has sent oil (BZ=F, CL=F) surging, but strength in other commodities has been “equally notable this year,” Adam Turnquist, chief technical strategist at LPL Financial, wrote in a client note published Wednesday.
The Bloomberg Commodities ex-Energy index, which measures the performance of a basket of commodities outside of the energy sector, notched an all-time high on Wednesday. The index has spent April and May breaking through the previous 2011 high on the back of a China-fueled supercycle.The Bloomberg Commodities ex-Energy index has hit new all-time highs as the broader commodity complex has rallied.·LPL Research
Not only has energy rallied this year, but metals have also surged, led most prominently by silver (SI=F) and copper (HG=F), where demand from a combination of tight supply, export restrictions, and the build-out of AI and electric vehicles have sent futures up 67% and 30%, respectively, on the two metals over the past six months.
At the same time, the closure of the Strait of Hormuz during the war in Iran has choked off major global supplies of fertilizers, putting upward pressure on a basket of agricultural commodities already up on a past year of global extreme weather events.
The run-up could have wide-ranging consequences for a US economy already facing sticky inflation, further confirmed this week by hotter-than-expected CPI and PPI reports, Turnquist said.
“If sustained, rising prices across industrial metals, precious metals, and agricultural commodities (not just oil) could create broader inflationary pressures by lifting input costs across manufacturing, construction, transportation, and food production,” Turnquist said.
“That dynamic could make it more difficult for inflation to moderate in the months ahead, even if energy prices eventually stabilize.” Today at 2:44 PM UTC
Grace O'Donnell
Bond yields rise to 2026 highs after hot inflation reports
Treasury yields were at their highest levels of the year after hotter-than-expected wholesale inflation data was released on Wednesday and consumer price data on Tuesday showed inflation accelerated in April.
The 10-year Treasury yield (^TNX) edged up toward the 4.5% level — sitting at 4.47%. It is currently at its highest level since July of last year.
The longer-dated 30-year yield (^TYX) remained above 5% key psychological level on Wednesday, while the 5-year yield (^FVX) held at 4.13%. Bond yields move inversely to prices.
All three bond yields have moved up between 2%-4% over the past five days as markets began to price in higher inflation expectations.
The 4.5% level on the 10-year yield and 5% level on the 30-year yield are seen as critical levels that can begin to exert downward pressure on equities. On Tuesday, Veteran market strategist Ed Yardeni told Bloomberg TV he’s not “freaked out” by the move higher.
“I kind of view bond yields of 4 and a quarter percent to 4 and three-quarter percent as normal — I’m not getting freaked out by it,” Yardeni said. “The US bond is still viewed as the safe haven, and there’s plenty of reasons to worry about things these days.” Today at 2:00 PM UTC
Jared Blikre
Some chip stocks back to record highs after 'worst' day in weeks
Traders keep buying the dip in semiconductors.
At the lows on Tuesday, Nvidia (NVDA) and Micron (MU) were both down $100 billion, and Micron was tracking its worst day in over a year.
Nevertheless, Nvidia closed at a record high on Tuesday and hit an intraday record shortly after the open today, along with several other chip stocks.
Here are this morning’s intraday record highs:
Dow Jones Sectors/Industries: Electronic Equipment, Computer Hardware, Electronic & Electrical, Industrial Metals
Tech stocks: Apple (AAPL), Analog Devices (ADI), AXT (AXTI), Cisco (CSCO), Lattice Semiconductor (LSCC), MACOM (MTSI), Nvidia (NVDA), ON Semiconductor (ON), SMART Global (PENG), Qnity Electronics (Q), Semtech (SMTC), STMicroelectronics (STM), Tower Semiconductor (TSEM), Texas Instruments (TXN), Vishay Intertechnology (VSH), Wolfspeed (WOLF)
Industrial stocks: Rocket Lab (RKLB)
Real estate stocks: Ventas (VTR) Today at 1:40 PM UTC
Jake Conley
US stock market opens Wednesday on shaky ground
The US stock market traded on a wobbly footing on Wednesday after hotter-than-expected price inflation figures dampened hopes for rate cuts, with updates from President Trump’s trip to Beijing on deck.
The Dow Jones Industrial Average (^DJI) fell 0.5%, while the S&P 500 (^GSPC) ticked down just below the flat line. The Nasdaq Composite (^IXIC) gained 0.2%.
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US producer prices rose far more than expected in April, according to data released Wednesday by the Bureau of Labor Statistics. Prices rose 1.4% in April over the previous month, far above March’s revised gain of 0.7% and economists' expectations for an increase of 0.5% on the month.
On a year-over-year basis, headline prices rose by 6% in April, above estimates of 4.8% and above the previous month's 4.3% year-over-year increase.
In focus on Wednesday is any news out of President Trump’s trip to China alongside a group of CEOs that includes Elon Musk, Apple’s Tim Cook, and the last-minute addition of Nvidia leader Jensen Huang. Today at 12:34 PM UTC
Jake Conley
Producer prices rose far more than expected in April
Wholesale inflation came in higher than expected in April, data released Wednesday by the Bureau of Labor Statistics showed.
Producer prices rose 1.4% in April over the previous month, far above the 0.5% increased expected by economists. It also outstripped March’s revised gain of 0.7%.
The “core” reading — which excludes the more volatile food and energy costs — showed producer prices advanced by 1% over the previous month. That was more than double the 0.3% growth economists had predicted and steeply above March’s revised gain of 0.2%.
On a year-over-year basis, headline prices rose by 6% in April, above estimates of 4.8% and outstripping March’s 4.3% print. Core inflation came in at 5.2%, hotter than estimates of 4.3% and previous month's 4% revised gain. Today at 12:34 PM UTC
Jake Conley
Morgan Stanley raises year-end S&P 500 target to
Morgan Stanley raised its year-end target for the S&P 500 to 8,000 from 7,800, citing an unexpectedly strong earnings season that has powered the benchmark to record highs.
Growth to 8,000 would represent a roughly 8% upside over the index’s 7,400 close on Tuesday. Growth to the bank’s updated 12-month outlook target of 8,300 would represent 12% growth for the index.
"Our bullish index view is an earnings story, not a multiple expansion one," Morgan Stanley analysts led by Mike Wilson said. "Over the next 12 months, we see the rolling recovery continuing to progress, driven by a strong earnings environment as positive operating leverage persists and is further enhanced by AI adoption.”
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First quarter profits for companies in the S&P 500 have grown 27% throughout the season, far above the 12% analysts had expected, according to Bloomberg. Roughly 83% of the 440 S&P 500 companies that reported earnings up to May 8 have beaten analyst estimates, Reuters noted.
The heightened outlook from one of Wall Street’s major banks comes even as geopolitical turmoil has wrangled the global market, with the war in Iran, US-China relations, the AI build-out, and complications for the Federal Reserve all in focus.
Resiliency throughout that chaos — “despite geopolitical risk, private credit concerns and AI disruption” — is “supportive of our view,” the bank’s analysts wrote. Today at 12:00 PM UTC
Grace O'Donnell
Chinese tech giant Alibaba stock sinks after AI investments weigh on
Alibaba (BABA) stock fell 3% in premarket on Wednesday before paring losses to less than 1% following its quarterly earnings report. The Chinese tech giant has been increasing spending on AI and user experience efforts.
Yahoo Finance’s Ines Ferre explains what’s behind the move:
The Chinese e-commerce and cloud giant reported a 3% increase in fourth quarter revenue on Wednesday, missing analyst expectations.
Alibaba’s earnings were weighed down by heavier spending on AI initiatives, cloud infrastructure expansion, and continued investment in its rapid-delivery business, which focuses on fulfilling orders within an hour.
Cloud revenue surged an annualized 38% to $6.13 billion, roughly in line with Wall Street estimates.
Earlier this year, the company split its artificial intelligence operations from its cloud computing division and appointed CEO Eddie Wu to head the newly established “Alibaba Token Hub” unit as it pushes to turn its AI investments into a profitable business.
Read more here. Today at 11:17 AM UTC
Karen Friar
Silver is joining copper in the AI build-out trade
Silver is perking up, copper just hit a record, and gold is sitting out the move, notes Yahoo Finance’s Jared Blikre in today’s Chart of the Day.
He writes:
Silver futures (SI=F) and copper futures (HG=F) have been rallying hand-in-hand lately, while gold futures (GC=F) have drifted lower.
The metals market is drawing a line between safe-haven demand and hard-infrastructure demand — and right now the AI build-out is showing up on the copper-and-silver side.
… Data centers don’t run on chips alone. They need power, wiring, cooling systems, backup equipment, grid upgrades, and physical construction. Copper is the obvious beneficiary. Silver’s role is less obvious to general investors, but it has heavy industrial uses too, especially in electronics, electrical equipment, and solar.
Read more here. Today at 11:16 AM UTC
Grace O'Donnell
Nvidia's Jensen Huang joins Trump's delegation to China
Nvidia CEO Jensen Huang was a last-minute addition to Trump’s delegation to China. Huang was not on the initial list of CEOs coming, but he joined the flight at a refueling stop for Air Force One at Anchorage International Airport on Tuesday night.
Tesla (TSLA) CEO Elon Musk was already on board, according to a White House official.Nvidia CEO Jensen Huang and US President Trump shake hands at an 'Investing in America' event in Washington, D.C., U.S., April 30, 2025. REUTERS/Leah Millis/File Photo·Reuters / Reuters
Yahoo Finance’s Ben Werschkul reports that Huang’s initial lack of attendance was attributed to worries among the White House’s more hawkish national security leaders regarding his willingness to push Trump toward opening up the Chinese market.
But reports suggest Trump apparently overrode those concerns, calling Huang himself to extend the invitation.
Other CEOs visiting China include Tim Cook of Apple (AAPL), Larry Fink of BlackRock (BLK), Kelly Ortberg of Boeing, Brian Sikes of Cargill, and Jane Fraser of Citi (C).
Read more here. Today at 9:25 AM UTC
Karen Friar
Memory crunch deepens chasm between stock winners and losers
Bloomberg reports:
The worsening shortage in global memory chips due to the artificial intelligence buildout is driving a widening gulf in corporate results and stock performances.
Shares of memory makers Micron Technology Inc. (MU) and Samsung Electronics Co. (005930.KS, SSNLF) have surged to record highs on blockbuster results driven by buoyant product prices. Meanwhile, consumer products makers from HP Inc. (HPQ) to Nintendo Co. (NTDOY, 7974.T) have been weighed down by profit pressures stemming from higher chip costs.
The squeeze shows how AI is reshaping the chip cycle, turning memory from a commodity input into a critical bottleneck. That has made pricing power the dividing line in global equities: suppliers are posting windfall gains, while device makers face higher costs and weaker margins.
The crisis has been apparent in recent results. Memory pricing was mentioned more than 550 times in company earnings calls and quarterly reports so far this year — already more than any full year in data compiled by Bloomberg tracking global equities since 1999.
“It’s becoming increasingly obvious that the memory crunch is not only worse than feared but also becoming more prolonged than had been expected,” said Michael Brown, a senior research strategist at Pepperstone Group Ltd. in London. “With AI demand continuing to surge, what we now hear from those close to the issue is that we might see the crunch continuing in some manner potentially as far as 2030.”
Read more here. Today at 2:27 AM UTC
Rian Howlett
Oil plateaus after three days of rises, with Iran war threats still hampering tanker movement
Bloomberg reports:
Oil steadied after rising almost 8% over the past three sessions as a resolution to the Middle East conflict remains elusive, with Iranian exports showing further strain from a US Naval blockade of the Strait of Hormuz.
Brent (BZ=F) crude traded near $107 a barrel, while West Texas Intermediate (CL=F) futures were below $102. There were no ocean-going tankers observed at Iran’s Kharg Island over the past several days, satellite images show, the first sign of an extended halt at the nation’s main export hub since hostilities began.
The Iran war is unlikely to feature heavily in talks between President Donald Trump and his Chinese counterpart Xi Jinping in Beijing this week, the US leader told reporters at the White House on Tuesday, saying trade discussions would be prioritized. He added that, “we have Iran very much under control.”
Read more here.
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- BofA Maintains a Neutral Rating on STMicroelectronics N.V. (STM)
May 11, 2026
STMicroelectronics N.V. (NYSE:STM) is one of the
12 Best Photonics Stocks to Buy Now.
On May 5, BofA boosted its price target for STMicroelectronics N.V. (NYSE:STM) to EUR 49 from EUR 42. It kept a Neutral rating on the stock. The firm belief that low earth orbit exposure supports space as a “structurally attractive growth vector.” The analyst said that the company has “deep customer embedment, notably with SpaceX,” and that its valuation supports a Neutral view.
Separately, on April 23, STMicroelectronics N.V. (NYSE:STM) released first-quarter 2026 results. It generated $3.10 billion in net sales and a 33.8% gross margin, as well as $70 million in operating income and $37 million in net income. According to CEO Jean-Marc Chery, revenue “came above the mid-point” of guidance, mainly caused by higher revenue in engaged client programs. Gross margin also exceeded expectations due to “better product mix.” He noted that demand had improved due to “strong booking and normalized inventory.” According to Chery, ST expects second-quarter revenue of $3.45 billion and a gross margin of approximately 34.8%, with datacenter revenue “nicely above $500 million” in 2026.BofA Maintains a Neutral Rating on STMicroelectronics N.V. (STM)
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
STMicroelectronics NV is a multinational semiconductor firm. The company operates in the Automotive and Discrete Group, Analog, MEMS, and Sensors Group, Microcontrollers and Digital ICs Group, and Others segments.
While we acknowledge the potential of STM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
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- Investors Can Find Comfort In Stabilus' (ETR:STM) Earnings Quality
May 11, 2026
The market for Stabilus SE's (ETR:STM) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.XTRA:STM Earnings and Revenue History May 11th 2026
The Impact Of Unusual Items On Profit
Importantly, our data indicates that Stabilus' profit was reduced by €25m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. If Stabilus doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
Our Take On Stabilus' Profit Performance
Because unusual items detracted from Stabilus' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Stabilus' earnings potential is at least as good as it seems, and maybe even better! On the other hand, its EPS actually shrunk in the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've found that Stabilus has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
This note has only looked at a single factor that sheds light on the nature of Stabilus' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- Stabilus SE To Sell Fabreeka, Tech Products To VMC Group; Reaffirms FY26 Guidance
May 11, 2026
(RTTNews) - Stabilus SE (SIUAF, STM.DE), a supplier of motion control solutions, on Monday announced the sale of subsidiaries Fabreeka and Tech Products to VMC Group for about $92 million.
The transaction is expected to close in the third quarter of fiscal year 2026.
The divestiture forms part of the company's strategy to sharpen focus on its core motion control business and high-growth automation areas.
The company said that the net proceeds from the transaction will mainly be used for debt reduction and strengthening the balance sheet.
Fabreeka and Tech Products generated combined revenue of about $32 million and adjusted EBIT of about $8.9 million in fiscal year 2025.
The company also said the transaction will have no impact on its fiscal year 2026 guidance.
Looking ahead, the company continues to expect fiscal year 2026 revenue in the range of 1.1 billion euros to 1.3 billion euros, adjusted EBIT margin of 10% to 12%.
On Friday, Stabilus SE closed trading, 4.32% higher at EUR18.36 on the XETRA.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Is It Too Late To Consider STMicroelectronics (ENXTPA:STMPA) After Its Surging Share Price?
May 10, 2026
Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.
If you are wondering whether STMicroelectronics is still good value or if the price has run ahead of itself, this article walks through what the current share price could mean for you. The stock has posted strong recent returns, with around 6.6% over 7 days, 52.4% over 30 days, 109.2% year to date and 134.2% over the past year. This can change how investors think about both upside and risk. Recent coverage has focused on the stock's sharp share price moves and what that might imply for expectations around the business and the broader semiconductor sector. This context matters because it can pull the valuation away from what the fundamentals alone might suggest. On Simply Wall St's 6 point valuation checklist, STMicroelectronics currently scores a 3. Next up is a closer look at how different valuation methods line up, followed by a final section on a more holistic way to think about what the stock might be worth.
Find out why STMicroelectronics's 134.2% return over the last year is lagging behind its peers.
Approach 1: STMicroelectronics Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today’s value, aiming to estimate what the business might be worth right now based on those cash flows.
For STMicroelectronics, the model used is a 2 Stage Free Cash Flow to Equity approach in US$. The latest twelve month free cash flow is a loss of about US$702 million. Analysts provide explicit free cash flow estimates for up to five years. Beyond that, Simply Wall St extrapolates the trend. In this case, the ten year projections run from hundreds of millions of US$ in the late 2020s to a projected free cash flow of US$2.7b in 2030.
After discounting these projected cash flows back to today, the DCF model arrives at an estimated intrinsic value of €34.75 per share. Compared with the current share price, this implies the stock is about 41.1% overvalued on this measure.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests STMicroelectronics may be overvalued by 41.1%. Discover 231 high quality undervalued stocks or create your own screener to find better value opportunities.STMPA Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for STMicroelectronics.
Approach 2: STMicroelectronics Price vs Sales
For companies that are generating revenue, the P/S ratio is a simple way to relate what you pay for the stock to the sales the business produces. This can be useful when earnings or free cash flow are less central to the story.
Story Continues
What investors are really weighing here is how much future growth and risk are being priced into that sales base. Higher expected growth or lower perceived risk can justify a higher P/S ratio, while slower growth or higher risk usually call for a lower one.
STMicroelectronics currently trades on a P/S ratio of 4.14x. This sits below the Semiconductor industry average of 4.77x and also below the peer average of 4.91x. Simply Wall St’s Fair Ratio for the stock is 7.34x, which is an estimate of what the P/S ratio might be given its earnings growth profile, industry, profit margins, market value and company specific risks.
The Fair Ratio adds another layer by tailoring the “normal” P/S to STMicroelectronics itself rather than relying only on broad industry or peer comparisons, which may include companies with very different growth and risk characteristics.
Comparing the current P/S of 4.14x with the Fair Ratio of 7.34x suggests the stock is trading below this benchmark.
Result: UNDERVALUEDENXTPA:STMPA P/S Ratio as at May 2026
P/S ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 99 top founder-led companies.
Upgrade Your Decision Making: Choose your STMicroelectronics Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as a simple tool on Simply Wall St's Community page that lets you connect your view of STMicroelectronics, such as whether you lean toward a higher fair value like €52.98 or a lower one like €21.13, to explicit assumptions for future revenue, earnings and margins. These assumptions are automatically linked to a fair value that can be compared with the current share price to help guide your buy or sell timing, and your view can be kept up to date as new information, like earnings or news, flows into the platform.
For STMicroelectronics however we will make it really easy for you with previews of two leading STMicroelectronics Narratives:
🐂 STMicroelectronics Bull Case
Fair value: €52.98
Current price vs this fair value: 7.4% below that fair value
Implied annual revenue growth: 15.75%
Focuses on AI servers, automotive microcontrollers, and Edge AI as key earnings drivers into the late 2020s, supported by an expanding developer ecosystem and higher value product mix. Points to large capacity investments in 300 millimeter silicon and silicon carbide, along with cost savings, as reasons net margins and cash flow could improve over time. Still highlights risks such as deglobalization, high inventory, and competition, so the case relies on these headwinds easing enough for the bullish earnings path to hold.
🐻 STMicroelectronics Bear Case
Fair value: €21.13
Current price vs this fair value: 131.9% above that fair value
Implied annual revenue growth: 8.30%
Emphasizes excess inventory, margin pressure, and softer demand in key regions as reasons current pricing may already assume a lot of good news. Flags geopolitical tensions, regional chip self sufficiency, and new local competitors as potential drags on market share and pricing power. Accepts that long term themes in automotive, IoT, and industrial applications exist, but argues that heavy spending and execution risks could limit the payoff at today’s valuation.
Seen together, these two narratives bracket a wide fair value range and very different expectations for growth, profitability, and what multiple the market might eventually place on those earnings. Your own view on demand, execution, and risk tolerance will determine which side feels closer to your base case.
See what the community is saying about STMicroelectronics
Do you think there's more to the story for STMicroelectronics? Head over to our Community to see what others are saying!ENXTPA:STMPA 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include STMPA.PA.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Assessing STMicroelectronics’ Valuation After Next Generation Ultralow Power Image Sensor Launch
May 10, 2026
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Why STMicroelectronics’ new image sensors are drawing investor attention
STMicroelectronics (ENXTPA:STMPA) has drawn fresh attention after launching ultralow power global shutter image sensors for wearables, AR and VR headsets, smart home devices, IoT hardware and medical equipment.
The VD55G4 and VD65G4 sensors target battery powered devices, offering always on vision with lower power needs and on device, AI ready data capture that could influence how investors view the stock.
See our latest analysis for STMicroelectronics.
The share price has climbed to €49.04, with a 30 day share price return of 52.35% and a 1 year total shareholder return of 134.15%, pointing to strong momentum as sensors, conference appearances and buyback completion keep the story in focus.
If this kind of chip driven momentum interests you, it could be worth scanning for other semiconductor and hardware plays through an AI infrastructure stocks screener such as 40 AI infrastructure stocks.
After a rapid share price move and fresh optimism around new sensors, the key question for you is simple: Is STMicroelectronics still trading below what its fundamentals suggest, or is the market already pricing in much of its future growth?
Most Popular Narrative: 78.2% Overvalued
The most followed narrative puts fair value for STMicroelectronics at €27.52, well below the last close at €49.04, and builds a detailed case around future earnings and margins.
The fair value estimate has risen moderately from US$24.68 to about US$27.52 per share, reflecting updated inputs across the model.
The revenue growth assumption has moved higher, the net profit margin has ticked up, and the future P/E has risen slightly, indicating a marginally higher multiple applied to projected earnings.
Read the complete narrative.
Want to see what is behind that higher fair value line? The narrative leans on faster top line growth, higher margins and a richer earnings multiple. Curious which assumptions really move the needle?
Result: Fair Value of €27.52 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still pressure points to watch, including competition in China around SiC products and the risk that elevated inventories could squeeze margins if demand softens.
Find out about the key risks to this STMicroelectronics narrative.
Another angle on value: sales multiples tell a different story
While the narrative model points to STMicroelectronics trading above a €27.52 fair value, the current P/S ratio of 4.1x looks cheaper than the European semiconductor industry at 4.7x and the peer average at 4.9x. It is still below a 7.3x fair ratio that the market could move toward. So is the recent share price strength an early move toward that higher sales multiple, or is enthusiasm running ahead of fundamentals?
Story Continues
See what the numbers say about this price — find out in our valuation breakdown.ENXTPA:STMPA P/S Ratio as at May 2026
Next Steps
With mixed signals on value and sentiment, it makes sense to move quickly. Review the numbers for yourself and weigh the upside against the downside using 2 key rewards and 2 important warning signs.
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include STMPA.PA.
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- JPMorgan Remains Neutral on STMicroelectronics N.V. (STM)
May 7, 2026
STMicroelectronics N.V. (NYSE:STM) is one of the top semiconductor stocks in our ranking of the top 10 chip stocks by YTD performance. On April 27, JPMorgan lifted the price target on STMicroelectronics N.V. (NYSE:STM) to EUR 48 from EUR 38 and maintained a Neutral rating on the shares.Why STMicroelectronics N.V. (STM) Skyrocketed Today
STMicroelectronics N.V. (NYSE:STM) also received a rating update from Susquehanna on April 24. The firm lifted the price target on the stock to $60 from $55, reaffirming a Positive rating on the shares and stating that they gave strong fiscal Q2 guidance with bookings accelerating, inventories normalizing, and DC continuing to expand. It added that although the management outlined a path to greater than 40% GMs, manufacturing reshaping remains somewhat of a headwind.
The rating update came after STMicroelectronics N.V. (NYSE:STM) announced its fiscal Q1 2026 results on April 23, with net revenues of $3.10 billion for the quarter. Management reported that U.S. GAAP gross margin was 33.8%, and excluding the Purchase Price Allocation effects from the acquisition of NXP’s MEMS sensor business, non-U.S. GAAP gross margin was at 34.1%.
STMicroelectronics N.V. (NYSE:STM) is a global semiconductor company that designs, develops, manufactures, and markets products used in a wide range of applications for automotive, personal electronics and communications equipment, industrial, computers, and peripherals. The company’s operations are divided into the following segments: Automotive and Discrete Group (ADG), Analog, MEMS, and Sensors Group (AMS), Microcontrollers and Digital ICs Group (MDG), and Others.
While we acknowledge the potential of STM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.
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- Foreign IT's strongest Quant picks are almost all semiconductors
May 7, 2026
[Growth bar graph]
Dougal Waters
Foreign IT stocks are generating some of the strongest Quant signals in the entire market right now, with nine of the ten names on this list carrying scores above 4.50
Below is a list of the top 10 foreign IT stocks ranked according to their Seeking Alpha Quant Ratings.
The list is topped by Silicon Motion Technology Corporation (SIMO [https://seekingalpha.com/symbol/SIMO]), with a near-perfect Quant Rating of 4.98. Taiwan Semiconductor Manufacturing Company (TSM [https://seekingalpha.com/symbol/TSM]) and Credo Technology Group (CRDO [https://seekingalpha.com/symbol/CRDO]) follow closely behind, each with ratings of 4.97. ASE Technology Holding (ASX [https://seekingalpha.com/symbol/ASX]) and United Microelectronics Corporation (UMC [https://seekingalpha.com/symbol/UMC]) round out the top five.
The list shows a heavy concentration of semiconductor companies, particularly from Taiwan and Hong Kong. European chipmakers Infineon Technologies (IFNNY [https://seekingalpha.com/symbol/IFNNY]) from Germany and STMicroelectronics (STM [https://seekingalpha.com/symbol/STM]) from Switzerland also make strong showings. Kyocera Corporation (KYOCY [https://seekingalpha.com/symbol/KYOCY]) from Japan represents the electronic components sector, while GDS Holdings (GDS [https://seekingalpha.com/symbol/GDS]) and Kingsoft Cloud Holdings (KC [https://seekingalpha.com/symbol/KC]) from China provide exposure to internet services and infrastructure.
Seeking Alpha’s Quant system ranks stocks based on their performance on critical quantitative measures, such as valuation, growth, stock momentum, and profitability. Each stock is rated on a scale of 1 to 5, with any rating above 3.5 indicating a bullish rating. A score of 2.5 or below represents a bearish profile.
Here is the list:
*
Silicon Motion Technology Corporation (SIMO [https://seekingalpha.com/symbol/SIMO]), Quant Rating: 4.98
*
Taiwan Semiconductor Manufacturing Company Limited (TSM [https://seekingalpha.com/symbol/TSM]), Quant Rating: 4.97
*
Credo Technology Group Holding Ltd (CRDO [https://seekingalpha.com/symbol/CRDO]), Quant Rating: 4.97
*
ASE Technology Holding Co., Ltd. (ASX [https://seekingalpha.com/symbol/ASX]), Quant Rating: 4.96
*
United Microelectronics Corporation (UMC [https://seekingalpha.com/symbol/UMC]), Quant Rating: 4.93
*
Infineon Technologies AG (IFNNY [https://seekingalpha.com/symbol/IFNNY]), Quant Rating: 4.82
*
STMicroelectronics N.V. (STM [https://seekingalpha.com/symbol/STM]), Quant Rating: 4.76
*
Kyocera Corporation (KYOCY [https://seekingalpha.com/symbol/KYOCY]), Quant Rating: 4.70
*
GDS Holdings Limited (GDS [https://seekingalpha.com/symbol/GDS]), Quant Rating: 4.56
*
Kingsoft Cloud Holdings Limited (KC [https://seekingalpha.com/symbol/KC]), Quant Rating: 3.96
MORE ON KINGSOFT CLOUD, TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY, ETC.
* TSMC: Early Signs Of Formidable Foundry Competition [https://seekingalpha.com/article/4899836-tsmc-stock-early-signs-of-formidable-foundry-competition-downgrade-hold]
* STMicroelectronics N.V. (STM) Shareholder/Analyst Call - Slideshow [https://seekingalpha.com/article/4899803-stmicroelectronics-n-v-stm-shareholder-analyst-call-slideshow]
* Infineon Technologies AG (IFNNY) Q2 2026 Earnings Call Transcript [https://seekingalpha.com/article/4899142-infineon-technologies-ag-ifnny-q2-2026-earnings-call-transcript]
* SA analyst upgrades/downgrades: TSM, OXY, VLO, HOG [https://seekingalpha.com/news/4588688-sa-analyst-upgradesdowngrades-tsm-oxy-vlo-hog]
* Infineon Technologies AG Non-GAAP EPS of €0.34, revenue of €3.81B; updates FY26 outlook [https://seekingalpha.com/news/4586623-infineon-technologies-ag-non-gaap-eps-of-034-revenue-of-381b-updates-fy26-outlook]
- Navitas Skyrockets 778% in a Year: Is the Stock a Buy Post Q1 Results?
May 7, 2026
Navitas Semiconductor NVTS stock has jumped a whopping 778% over the past year, handily outperforming close peers like On Semiconductor ON and STMicroelectronics STM. The rally has been driven by growing investor optimism around AI infrastructure spending, particularly in data centers and power-grid upgrades, where Navitas is emerging as a key player.
The company is undergoing a major strategic shift under its “Navitas 2.0” plan. It is moving away from slower-growth mobile and consumer markets and focusing on higher-growth areas such as AI data centers, energy and grid infrastructure, industrial electrification and performance computing. Management estimates these markets could represent a $3.5 billion serviceable available market by 2030, witnessing more than 60% CAGR.
Navitas’ position is strengthened by its portfolio of both gallium nitride (GaN) and high-voltage silicon carbide (SiC) technologies, giving it exposure across multiple parts of the AI power ecosystem.
Still, after such an explosive stock rally, investors are left wondering whether the shares can continue climbing from current levels. Or should they wait for a better entry point?
One-Year Price Performance ComparisonZacks Investment Research
Image Source: Zacks Investment Research
First, let’s take a look at the company’s latest quarterly results.
NVTS’ Q1 Highlights & Q2 View
NVTS reported first-quarter 2026 revenues of $8.6 million, down from $14 million a year ago. However, sales improved 18% sequentially as demand from higher-power markets continued to rise. The company’s shift toward AI infrastructure and industrial applications also helped margins improve. Adjusted gross margin expanded to 39%, up from 38.7% in the previous quarter and 38.1% a year earlier. Navitas posted an adjusted loss of 4 cents per share, narrower than the consensus mark of 5 cents and the year-ago loss of 6 cents per share.
Management expects second-quarter revenues of about $10 million, implying roughly 16% sequential growth, while adjusted gross margin is projected at around 39.25%.
Navitas Semiconductor Corporation Price, Consensus and EPS SurpriseNavitas Semiconductor Corporation Price, Consensus and EPS Surprise
Navitas Semiconductor Corporation price-consensus-eps-surprise-chart | Navitas Semiconductor Corporation Quote
Key Growth Drivers for Navitas
NVTS is benefiting from the rapid expansion of AI infrastructure, especially in data centers and power-grid upgrades. Navitas’ combined AI infrastructure business, which includes data center and grid applications, grew 50% sequentially in the first quarter of 2026, exceeding expectations. The company believes this opportunity is still in its early stages as current growth is largely tied to rising AI deployments. Over time, growth could accelerate further as future AI racks require far greater semiconductor content and more advanced power architectures.
Story Continues
Navitas is also strengthening its position through new AI-focused products, including a 20 kW 800V-to-6V GaNFast power delivery board for AI data centers and a 250 kW solid-state transformer solution aimed at next-generation grid infrastructure. Navitas also expanded its fifth-generation 1200V SiC MOSFET lineup with compact packages designed for higher-density AI power systems.
One major advantage for Navitas is its ability to offer both GaN and SiC technologies. Many rivals focus on only one technology, but hyperscalers increasingly want suppliers that can support the full AI power roadmap. SiC chips are currently important for high-power AC/DC conversion, while GaN is expected to play a larger role in next-generation in-rack power systems because of its higher efficiency and faster switching capabilities. This dual-technology portfolio positions Navitas well as AI data centers shift toward higher-power 800V HVDC architectures.
The company is also improving the quality of its business by moving away from lower-margin mobile and consumer markets and focusing on industrial and AI-driven applications. High-power markets now contribute most of the company’s revenue and grew 35% year over year in the last reported quarter, while mobile exposure is expected to become minimal by the end of the year. This transition is helping margins improve and could support more stable long-term growth due to longer product cycles and stronger customer visibility.
The Zacks Consensus Estimate for NVTS’ 2026 and 2027 bottom line implies a year-over-year improvement of 5% and 21%, respectively.
Navitas also remains financially solid despite ongoing losses. The company ended first-quarter 2026 with around $221 million in cash and no debt, giving it enough flexibility to continue investing in R&D and customer programs.
Valuation Check: NVTS vs. ON & STM
Navitas stock trades at a much higher P/S of 82.91X compared with On Semiconductor and STMicroelectronics. Meanwhile, ON and STM’s forward sales sit at 6.39X and 3.51X. Navitas has a Value Score of F.
NVTS Appears OvervaluedZacks Investment Research
Image Source: Zacks Investment Research
How to Play the Stock Now
NVTS has strong exposure to fast-growing AI data center and power infrastructure markets, and its dual GaN and SiC portfolio gives it an advantage as AI power architectures evolve. However, the stock’s massive rally already appears to price in much of this optimism.
Despite improving momentum, Navitas is still operating at a very small scale. First-quarter revenues were only $8.6 million, while second-quarter guidance implies roughly $10 million in sales. The company also remains loss-making, and management indicated profitability may require quarterly revenues to reach the high-$30 million range. That leaves significant execution risk, especially if AI spending slows or customer ramps take longer than expected.
Navitas’ transition from a consumer-focused chipmaker to a high-power AI infrastructure supplier is operationally challenging, especially as it scales manufacturing, prepares for 8-inch GaN production with GlobalFoundries, and works to control costs despite its small scale.
With NVTS trading at a steep premium, the risk-reward balance does not look favorable at current levels. While the long-term story remains promising, the current risk-reward setup does not look attractive after the massive rally. Investors may be better off waiting for either stronger financial execution or a more reasonable entry point before considering the stock.
NVTS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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